Extended Car Warranty – Do I need extended car warranty Insurance

This is a question that many auto purchasers ask themselves when they select a new or used car. There are some factors to consider but the main question is how much are you prepared to spend on your car should it require repair?

If you purchase a new car it comes with a three year and 36000 mile warranty. The car will be serviced under the warranty should your car require maintenance or repair. Should you choose to sell your car within that 3 year window then you could rely solely on your manufacture car warranty. Should you choose to keep your car for a longer period than 3 years then it is wise to consider extended car warranty insurance. The recommended plan is bumper to bumper as it is comprehensive but it does not cover wear and tear on your vehicle. If you want to protect yourself from any unexpected car repairs you can rely on a high initial cost for the plan but you will not have to pay for any major car repairs.

Should you decide to pay for extended car warranty insurance allow yourself time to research the right company. You can extend your warranty with the car manufacturer from the onset of purchase or at a later stage. This is often recommended as the manufacturer is trusted and you will receive the correct parts for the make of your car. You could select a car dealer to sell the plan to you which may be cheaper or more expensive. It depends on the dealer but there is no guarantee that your warranty covers mechanical breakdown and wear and tear. You could use an independent company that offers low costs but it may cost you more in the long run if the company does not fulfil its promise.

Should you reach a point where you decide to sell your car then you should select an extended car warranty insurance plan which allows you to transfer the warranty to a new buyer. This increases the chance of your sale to a new buyer.

Select an extended car warranty insurance plan that is flexible when it comes to repairing your car. Some companies are selective to where you should have your car repaired. Make sure you read the terms and conditions of your contract.

Another point to consider once your car requires repair is that the car insurance company pays the car dealership directly with a company credit card.

You can choose whether or not to buy extended car warranty insurance but if you know that you will keep your car for longer than the initial warranty period then opt to pay for extended car warranty insurance.